Strategic Business Analysis

Assignment 1
Exercise 1-7 : Ethics in Business
1. How would this behavior affect customers? How might customers attempt to protect
themselves against this behavior?

If all automotive repair businesses routinely followed the practices of attempting to sell
unnecessary parts and services to the customer will not trust them anymore, they would not
follow anymore some of the advice or assistance about the problem. Also in that case some
customers might find a way to assist their problem themselves or they hire some experts to see
their problem correctly.

2. How would this behavior probably affect profits and employment in the automotive
service industry?

This behavior would probably affect profits and employment by in employment, customers
would not trust anymore of the employee about the service they give. In that case, it can cause
bad feedback about the employee because the customers are not sure if they really solving their
problems. In affecting profits most customers will not seek advice from some repair business and
they will find a way to check their problem and consult with the expert or person can really solve
their problem, in that case, it can decrease the customers willing to go in automotive repair
businesses and it would reduce employment in the industry and profits.

EXERCISE 1–8 Cognitive Bias

The type of cognitive bias reveals in the data is self-enhancement bias it means
overestimating one's strengths and underestimating one's weaknesses relative to others. This type
of cognitive bias can influence manager's planning, controlling, and decision-making activities,
first in planning the managers can believe in their self so much that everything they plan should
be successful and good things will happen in the future, second in controlling the managers can
easily blame the other employee if the some of his plans did not work, and lastly, in decision-
making activities, some of the leaders can have poor decisions because they now have no
confidence if their skills can resolve some of the problems. The steps could the managers take to
reduce the possibility that this type of cognitive bias would adversely influence their actions is
by having a discussion about the plan they would do so that you can gather some information
that can help and resolve some of the issues.

EXERCISE 1–9 Ethics and Decision Making

As a chairman of the Department of Accountancy at Mountain State University, I would

respond in a way that will make it look I am standing by my professor and tell Oregon Coastal
University that Dr. Candler is one of the tenured professors in our university. Then, I would
leave it up to Oregon Coastal University if they will hire Dr. Candler after they interview him for
the job. As Dr. Candler’s superior, I will much rather not stand in the way and hinder the job
opportunity that will be given to Dr. Candler. I think this an ethical way to answer the inquiry as
I will not stop Dr. Candler from trying to seize the job opportunity and stand by him as one our
own. At the end of the day, it is still up to the Oregon Coastal University if they will hire him or
not, and in the first place they were the ones who offered a job to Dr. Candler, so that means they
see something in him that pushed the Oregon Coastal University to try and offer Dr. Candler a
job in their university.